Yulon Nissan Motor Co’s (裕隆日產) shares yesterday rose 9.95 percent, propelled by the company reporting six-year high earnings for last year on the back of a massive gain from its Chinese subsidiary.
Shares rallied to NT$210, the highest since it traded at NT$214 on Tuesday last week. That helped the auto subindex advance 8.28 percent, outperforming the TAIEX’s 3.87 percent gain.
Yulon Nissan, which distributes Nissan and Infiniti vehicles, reported that net profit last year jumped 23.6 percent to NT$7.28 billion (US$240.1 million), compared with NT$5.89 billion in 2018, the company said in financial statements on Tuesday.
Operating income last year grew 1.49 percent to NT$1.36 billion, from NT$1.34 billion in the previous year.
The company reported that earnings per share rose from NT$19.63 in 2018 to NT$24.27 last year.
Yulon Nissan’s earnings growth was mostly supported by a massive nonoperating profit totaling NT$7.75 billion, up 22.24 percent annually. The company’s Chinese subsidiary Guangzhou Fengshen Automotive Co (風神汽車) contributed NT$6.81 billion to the company last year.
The company last year increased its stake in Guangzhou Fengshen to 42.69 percent, up from 40 percent previously, the financial statements showed.
Revenue last year rose 3.34 percent to NT$32.15 billion from NT$31.11 billion in 2018.
The company’s board of directors is to review a cash dividend distribution proposal in May.
Last year, the company paid a cash dividend of NT$17.67 per share, representing a payout ratio of 90 percent.
Yulon Nissan last month sold 5,377 new vehicles, down 5.9 percent annually, while the nation’s new vehicle sales increased 39.3 percent to 27,350 units, government data showed.
Shares in Hotai Motor Co Ltd (和泰汽車), which distributes Toyota and Lexus vehicles in Taiwan, rose 9.97 percent to NT$435.5 amid expectations that people would be more willing to buy cars to avoid public transportation during the COVID-19 pandemic.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a